The business community has hailed the government's decision to reduce prices of petroleum products, saying that it would help reduce input costs. The government has reduced prices of petroleum products by up to Rs 6 for the month of September. The price of petrol was reduced by Rs 2.41 bringing it down to Rs 92.83 per litre. High speed diesel price went down by Rs 6.37, after which it is available to consumers at Rs106.57 per litre. The rate of kerosene oil was slashed by 46 paisas, bringing its price to Rs83.50 per litre.
Talking to Business Recorder, members of the business community said that the major chunk of electricity was produced through furnace oil which has significantly increased their costs of production, besides making local exports uncompetitive in the international market. However, the latest cut in prices would bring some relief both in terms of reducing their input costs and their transport costs.
Atif Ikram Sheikh, former President Islamabad Chamber of Commerce and Industry (ICCI), told Business Recorder that the latest reduction in prices of petroleum products would have an overall positive impact on business activities, especially in the manufacturing sector. "About 5-7 percent reduction in input cost is expected", said Sheikh, adding that transportation charges will go down, which would result in reduction in prices of fruits, vegetables and other daily use items.
The government's decision to reduce petroleum prices would provide relief and facilitate the general public as well as boost the national economy, he added. Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Ijaz A Khokhar termed the decrease in price of oil products 'peanuts...which is not going to decrease cost of doing business.
If the government is serious about reducing the cost of doing business, a sizable reduction is needed in price of utilities," he added. Khalid Mehmood Khokhar President Pakistan Kisan Ittehad Council said that Rs 6 per liter reduction in diesel prices is very little and not going to help in reducing the cost of production. Though diesel prices came down by Rs 6 used by tractors and tube wells but at the same time, fertilizer prices has gone up, which fuelled the production cost, said Khokhar, adding that such meager reduction in petroleum products prices will not bring any significant relief.
The transporters termed the decrease in price of petroleum products 'very little' and have refused to slash fares. This correspondent talked to several transporters at different bus stands, including Pir Wadhai general bus stand, G-9 Islamabad bus stand and Faizabad bus stand, and their consensus was that the government must further reduce prices of petroleum products.